Fintech, Cleantech Lead Africa’s $345M Startup Surge in May 2025

Startups across Africa raised over $345 million in May 2025, marking more than double the amount raised during the same month last year, according to a report by research firm Briter.

Despite the surge in capital, the number of deals and participating startups fell. Fintech emerged as the leading sector, accounting for 34% of total funding. Cleantech followed closely, supported by an $80 million debt deal secured by Sun King to expand energy access in Nigeria. Equity remained the dominant financing instrument, with disclosed equity deals making up more than half of total investment volume.

However, debt is becoming more influential as it represented just 8% of all deals, it accounted for nearly a third of the total capital raised, indicating the growing role of larger, structured debt instruments in early-stage financing.

Grants continued to provide critical support, particularly in EdTech. The Mastercard Foundation awarded $100,000 each to a new cohort of education startups in Kenya and Nigeria, offering mentorship and business development in addition to financial backing.

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, also boosted the continent’s cleantech scene with a $179.6 million guarantee to Kenya-based KOKO Networks, aimed at scaling clean energy access.

Egypt led the continent’s fundraising efforts, contributing 51% of total capital in May, including a $50 million bond issuance by MNT-Halan. The country also saw the most acquisition activity, including Qardy’s $23 million sale to Catalyst Partners Middle East.

Overall, African startups raised $1.055 billion in the first five months of 2025, a 40% year-on-year increase, particularly in Egypt, South Africa, Nigeria, and Kenya, which accounted for 84% of total investments.